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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Spartsker who wrote (7173)	1/16/1998 1:40:00 PM
From: Harvey Rosenkrantz	Read Replies (1) \| Respond to of 152472

More analyst gyrations today. Bankers Trust Alex.Brown said on Friday it lowered its rating on Qualcomm Inc to market perform from buy.

To: Spartsker who wrote (7173)	1/17/1998 1:13:00 PM
From: John Stichnoth	Read Replies (2) \| Respond to of 152472

Re Minority interest (joint venture) accounting. Since JV is a Q-consolidated subsidiary, its purchases from the JV would be eliminated upon consolidation. Since JV sales are to Sony and Q only, 49% of sales and expenses of the JV will thus appear on each respective line of the consolidated numbers--of "wholesale" sales. The other 51% of JV sales will be delayed, presumably, and will be at Q's "retail" rate to the likes of Radio Shack, etc. (Minority interest will appear just before Net Income and after operating earnings, essentially appearing as an expense.) The big effect on profitability measurements, it seems will be on asset utilization measures--Q retains 100% of the assets on consolidation. Thus its assets are blown up but it gets only 51% of the JV's net.